Vince LLC (VNCE), a global contemporary group known for its premium clothing and accessories, reported its net goodwill balances and changes at $31.97 million for Q1 2023. Additionally, the company continues to maintain its compliance with applicable covenants in long-term debt and financing arrangements.
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Breakdown of Intangible Assets
In the breakdown of its intangible assets, Vince LLC’s customer relationships amounted to $11.97 million as of April 29, 2023. The company recognized $111 of revenue that was previously included in the contract liability as of January 28, 2023, which amounted to $1,617. As of April 29, 2023, the contract liability was $1,537. This demonstrates the company’s ability to generate cash flow and maintain sufficient liquidity to meet its obligations.
Debt Overview
Vince LLC’s long-term debt amounted to $108,018 with a carrying value as of April 29, 2023. The company’s Term Loan Credit Facility, 2018 Revolving Credit Facility, and Third Lien Credit Facility were recorded at a fair value of $27,000, $53,484, and $26,869 respectively. The fair value of these debt obligations was determined using Level 2 and Level 3 inputs, reflecting the company’s assumptions in measuring fair value.
Financing Arrangements and Compliance
The company has also entered into several financing arrangements, such as the Term Loan Credit Agreement and the First Amendment to the Term Loan Credit Agreement (TL First Amendment), which help provide financial flexibility for the company’s growth plans. These arrangements require the company to maintain specific financial ratios, debt ratios, and excess availability under the 2018 Revolving Credit Facility. As of April 29, 2023, Vince LLC was in compliance with these covenants.
Q1 2023 Asset Sales
During the first quarter of 2023, Vince LLC completed the sale of its intellectual property and certain ancillary assets of its subsidiaries, Rebecca Taylor, Inc. and Parker Lifestyle, LLC. The net cash proceeds from these sales, amounting to $2,997 and $838 respectively, were used to repay a portion of the Term Loan Credit Facility.
Conclusion
In summary, Vince LLC’s financial performance for Q1 2023 remained strong with stable goodwill and intangible assets balances of $31.97 million. The company has been actively managing its debts and financial arrangements to maintain its growth trajectory in the global contemporary fashion industry and is in compliance with the applicable covenants.
Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/1579157/000095017023027589/vnce-20230429.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!